Russia

Russia reconsidering sourcing requirements

4 November 2014
by Eugene Gerden

RUSSIA: The Russian government is considering easing localisation requirements for wind developers and manufacturers in an effort to kickstart the sector.

Russian local sourcing requirements are set at 55% in 2015 and 65% in 2016-2017. The policy is seen as a major obstacle to development in the country, as the market is too small to sustain a major manufacturing investment.

The news Russia is reconsidering its plan was revealed by Alia Samigullina, an official representative of Russia's Deputy Prime Minister Arkady Dvorkovich. Dvorkovich is responsible for the development of wind energy and other renewables in the Russian government.

At the same time the government has approved an extension of commissioning of wind power facilities until 2030. Under the current rules the annual volume of commissioning of wind power capacities in Russia should increase from 250MW in 2015 up to 1GW in 2020.

However the majority of developers has repeatedly stated that the achievement of such a deadline is impossible.

The government has also approved introduction of localisation for retail wind projects, where electricity is purchased by regional network companies at higher tariffs.